WASHINGTON — Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., is one of the few government officials whose reputation has actually improved during the financial crisis.
The soft-spoken academic and author of children's books pushed aggressively for the government to help troubled homeowners -- winning praise from Democrats and a cool response from many of her fellow Republicans.
Now, with President Bush's tenure almost at an end, she's advocating harder for her foreclosure relief plan in what looks like an attempt to impress the man who'll take his place, Barack Obama. In the process, she could secure a role in the new administration.
Bair last week took two unusual steps that suggest where she's focusing her gaze. On Wednesday, she publicly criticized a highly touted foreclosure prevention plan from the Treasury Department and other agencies as falling short of what's needed.
Then on Friday, Bair released details of her much more ambitious plan -- a $24.4-billion program aimed at preventing 1.5 million foreclosures -- even though Treasury Secretary Henry M. Paulson had told reporters earlier in the week that he would not pay for it.
"Sheila's very ambitious, and I think she's looking for a job promotion in the Obama administration," said Bert Ely, a banking industry consultant. "Even though she's a Republican, she's much more in tune with the Democrats."
Bair's Republican registration and her Democratic leanings on handling the mortgage crisis could make her an appealing choice for Obama, analysts said. She has been mentioned as a dark-horse candidate for Treasury secretary, having served as assistant secretary for financial institutions in 2001 and 2002. She has also been thought of as a mortgage czar to oversee the various government efforts to stem foreclosures, should Obama create such a position.
"I wouldn't mind seeing her as Treasury secretary," said Dean Baker, co-director of the Center for Economic and Policy Research, a liberal Washington think tank. He said Obama would be "foolish" not to find a place for Bair in his administration considering her performance during the financial crisis.
Bush appointed Bair, 54, to a five-year term as chairwoman of the FDIC in 2006. It is an independent agency, similar to the Federal Reserve, so Bair does not have to step down with the change of administration. Her term on the FDIC board extends even longer, until 2013.
